The Capital Stock Is Fixed at 5 Units,the Price of Capital

question 74

Multiple Choice

The capital stock is fixed at 5 units,the price of capital is $60 per unit,and the price of labor is $20 per unit. Based on the above,if the firm produces 80 units of output,what is its total cost of production?

• A)$540
• B)$1,600
• C)$1,900
• D)$5,040
• E)none of the above

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Definitions:

Journalize

The act of recording financial transactions in a company's journal, a step in the accounting process.

Withdraws

The action of taking money out of an account, or removing capital from a business by its owners.

Personal Use

Personal use refers to the utilization of property, assets, or services for individual rather than business or commercial purposes.

Journal Entry

A record of financial transactions in the accounting books of a business, showing the accounts affected and the amounts of debits and credits.